IRS Long Term Care Deduction
Long Term Care Tax Deductions
One of the more frequently asked questions about long term care insurance is if you can’t afford the long term premiums are there any tax benefits to owning a long-term care policy that might help subsidize the premiums.
Here are some answers to those questions given by tax experts:
1. Long-term care premiums are deductible as a medical expense (subject to the 7.5 percent-of-AGI floor), although there are limits to the deduction based on the taxpayer’s age. For example, a taxpayer between ages 61 and 70 may deduct as much as $3,080 in 2008 ($3,180 in 2009). A couple filing a joint return can deduct as much as $6,160 in 2008, if each spouse pays premiums on qualified long-term care policies. Payments in excess of any LTC benefits may be deducted as medical expenses.
Categories: Income Tax, Insurance, Money & Finance Tags: hsa, irs and long term care deduction, long term care, long term care insurance
Are Long Term Care Premiums HSA Contribution
HSA Funds for Long Term Care Insurance Premium
Long term care premiums can take a huge bite out of your budget but there is a way to cut the cost a bit and it is all tax free. You can use an HSA account to pay your premiums for long term care. If you want to learn how to evaluate long term care policies in terms of rate increases see our post Long Term Care Insurance Rate Stabilization A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses. Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA. If you use the money to pay for qualified medical expenses you do not have to pay taxes.
Expanded Child Tax Credit 2011
What Tax Deductions Are There for Children in College
Our paper had a really good article on the expanded child tax credit 2011. So here is a quick summary:
Who is a dependent and how much can you deduct:
For each dependent child, you can take a $3,650 personal exemption. The more children, the more exemptions you can take. Each personal exemption serves to reduce your income.
Children under age 19 can be claimed as dependents; those under 24 if they are full-time students. Children 24 or older who are full-time students can be claimed provided their income is less than $,3650. Age limits do not apply to disabled children.
EZ Tax Return – Should You Pay a Tax Preparation Service?
Prepare Tax Return for Free
If you are considering paying one of those tax preparation agency to help you prepare the EZ tax return think again. The typical cost for preparing your EZ tax return is $39.00. There is also an additional fee applied with the earned income tax credit. That cost is usually $35.00.
The tax preparation companies say that for your money you are getting the expertise of the company. If they make a mistake they would pay any additional interest or penalties. If you were to be audited they explain the notice and tell you what you need to do to comply with IRS audit process.
Categories: Income Tax, Money & Finance Tags: earned income credit tax, earned income credit tax chart, earned income tax credit, earned income tax credit calculator, earned income tax credit qualifications, earned income tax credit table, ez tax return, online income tax filing, short form federal income tax return filing, what is earned income tax credit
What to bring if you need help with your Income Tax Return
Income Tax Questions
Here are some suggestions from AARP of what you need to provide, if you are going to get help with your taxes. I’m sure the list is applicable to those besides seniors. Here is what you should bring:
Valid picture ID
Copy of last year’s tax return – if available
Your spouse, if you plan to file a joint return
Social security card for you and anyone else named on the return
Birth dates for you, your spouse and dependents named on the return
Categories: Income Tax, Money & Finance Tags: income tax filing, income tax questions, income tax return, income tax tips, irs income tax
